what do you think?

Pobby

Thanks for the replies guys. I was used as the "persuader of last resort" to try and talk him out of the car loan. That didn`t work despite all the stops being pulled out.

What is scary is that the lasses parents are encouraging them.

I had a look at the place on Rightmove and it really is small, very much the starter home. The kind of place that screams large further drops in price.

Mini_Bear

Oh no Pobby, it looks to everyone that this is a bad idea and u r goin to have to see it thru.
I would be interested to kno whether your nephew has lived with his girlfriend before, the practical point is that maybe they should rent for 6 months to see how they get on with bills and such. payin a grand a month just for mortgage and then i imagine bills will be another 500month will not leave them much cash to play with.
it sounds like ur nephew likes the expensive things in life and is destined for debt. some ppl simply cant be talked too.
what a terrible situation to be in 21 yrs old, a 40yr millstone round your neck and a depressingly small house to show for it!
I guess all u can say is that its a bad idea and they need to save more of a deposit.

ukcarper

It’s funny how things have changed back in the early seventy's lots of people got married in their early twenty’s. I bought my first house at the age of 21 and got married a month after I was 22 my wife 20 lots of my friends got married at the same age. Mind you I didn’t enter that kind of dept our mortgage was about 4x our joint income.

Pobby

Mini_Bear wrote: »

Oh no Pobby, it looks to everyone that this is a bad idea and u r goin to have to see it thru.
I would be interested to kno whether your nephew has lived with his girlfriend before, the practical point is that maybe they should rent for 6 months to see how they get on with bills and such. payin a grand a month just for mortgage and then i imagine bills will be another 500month will not leave them much cash to play with.
it sounds like ur nephew likes the expensive things in life and is destined for debt. some ppl simply cant be talked too.
what a terrible situation to be in 21 yrs old, a 40yr millstone round your neck and a depressingly small house to show for it!
I guess all u can say is that its a bad idea and they need to save more of a deposit.

You have summed him up. Loves the expensive things in life and he already has a bit of debt. I mean, how do you get through to the " renting is dead money " philosophy?

This is the first time they have lived together. I worked out that at the moment they will have around £1300 to £1500 a month after the mortgage. I have pointed out that he works for his Dad and that he earns more than anyone else would pay him. Also they are struggling for work and the amount he is taking home could easily drop. He said, no bother, he will get a job at the local super market. Oh well.

I have decided to sit this one out as I don`t wish to upset my family. I think they see me as a bit weird to a degree as I have a fair amount of savings but live a fairly frugal life style.

kennyboy66_2

If you can't persuade them to wait and lower their sights slightly, is there any chance they could drive a harder bargain.

£20-25k off that price could reduce the chance of negative equity & may allow them to reduce the term to pretty close to 25 years.

lostinrates

It makes me sad.

As ukcarper said: its not jut the age, peple can and do meet young, make a commitment to each other and live together ever after, but I would suggest that those who have made it work in general had a higher ''emotional age'' and more wisdom than many, though by no means all, now, and I'd suggest the casual attitude to unnecessary debt is greater now than in the past. Ten years ago I and my friends had, in the main, old, cheap to run cars: not car loans.

I hope it works out for them in the long term. Its likely it might not. As a matter of interest, it might be worth suggesting they get married, to see what their attitudeto commitment is....it seems to me dealing with the financial break up of any relationship with a house involved and possible negative equity etc etc, is harder to resolve than a ''money/assetless and childless'' divorce would be.

Pobby

They do seem very close and she is a nice girl. I feel uncomfortable to take this much further as Being an uber bear regarding over priced property doesn`t always go down to well. One worry is that he might be a bit confused by his parents life style. Of recent years there has been a joint income of nearly 6 figures per annum pre tax. So the life style he has been accustomed to has been one of luxury.

JonnyBravo

Clearly it's a bad idea pobby.
The multiples are massive for them and as others have stated it's a surprise they can still get that kind of mortgage when eveyone else is saying how difficult it is. You need to make sure they get this message, but ultimately once you've told them it's their life and their mistake to make.

I'm surprised you needed to ask our advice though as you seem to be advice central for your family/circle of friends with a new thread about someone or other most months. Perhaps the people I know are luckier than most in the general population (?) and yours unluckier (?) cos you seem to have my share of unlucky/foolish stories! I hope it has turned out ok for all of them.

a few egs
Relative losing house
http://forums.moneysavingexpert.com/showthread.html?t=1541725&highlight=

Friend losing pub
http://forums.moneysavingexpert.com/showthread.html?t=1427091&highlight=

Friend splitting up and going bankrupt?
http://forums.moneysavingexpert.com/showthread.html?t=1407829&highlight=

Friend being gazundered
http://forums.moneysavingexpert.com/showthread.html?t=1151219&highlight=

Friend in trouble
http://forums.moneysavingexpert.com/showthread.html?t=1056049&highlight=

Friend about to be sued by developer
http://forums.moneysavingexpert.com/showthread.html?t=1047415&highlight=

Friend making silly decision
http://forums.moneysavingexpert.com/showthread.html?t=1026553&highlight=


Do you know anyone doing ok?

Pobby

Lol @ JonnyBravo. I see what you mean. Do note that there has been only a couple of posts regarding my family and the rest are friends or folk I know. I do know some that are doing OK also..... Dear oh dear, I am coming across as a bit of a doom monger.

Of those I have posted about they are at least hanging on in there or indeed their fortunes have reversed somewhat I am glad to say.

Mini_Bear

At 23 myself i see your nephews attitude to money is the norm and it really worries me.
i agree with lostinrates re the marriage/engagement thing. many young people dont view buyin a house as long term commitment (you can alwas sell it for more and get rid if necessary) except u cant now with neg equity and credit drying up.
i too am shocked they can get a 5.5 times salary multiple mortgage.
i hope ur nephew realises that if he has to take a supermarket job they pay 12k tops full time!